Semtech is a "hidden AI gem" that is not being appreciated by Wall Street, according to Baird. The firm added the semiconductor manufacturer to its "fresh pick" list and reiterated its outperform rating on Tuesday. Its $40 price target suggests nearly 80% upside from Monday's close. Semtech provides high-performance semiconductors, internet of things systems and cloud connectivity services.
mountain Semtech's one-year performance In addition, a strong ramp of linear-drive pluggable optics, or LPOs, is anticipated next year, and Semtech is expected to be a leader in the space, he said. There will also be a new wave of optical investments in the second half of 2025. Semtech is "firmly entrenched as the leader" in that space due to its time to market, product performance and depth of customer relationships, Gerra noted.